If you see fewer auto repair shops near you then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem may be the auto repair and service market has been shrinking in the last ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer getting 100,000 mile warranty which means that the independent will get little chance to work with that car for the first 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a shot to keep on top of the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s as well as competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers often competed for skilled labor and already have got become even more aggressive. With fewer folks entering business repair profession and opting instead for careers with regard to health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to work with and retain these competent employees. A great automotive technician, would you rather work for Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician actually make $100,000 one year with benefits while a self-employed shop owner would have to gross a lot more $1,000,000 every year to make that and still have to afford their own benefits and social security.
Because from the economic realities many independent owners are now closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, is not diagnosis is comprised and a part of needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding up the repair period and increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and there has been a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical facts are proprietary individuals independents claim the information should be around to anyone that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777